A Company Has a Decreasing Current Ratio

question 43

Multiple Choice

A company has a decreasing current ratio. Creditors should be concerned

• A)with long-term solvency.
• B)about the company's ability to pay current debts as they come due.
• C)about the company's profitability.
• D)about whether earnings per share is increasing or decreasing.

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Definitions:

Grant

A financial award given by an organization, often governmental, to an individual, group, or institution typically for research, projects, or service initiatives.

Motion

A procedural request or application presented by an attorney to the court on behalf of a client.

Default Judgment

A legal judgment in favor of the plaintiff when the defendant fails to respond or appear in court.

Summons

An official notice or order issued by a court requiring a person to appear in court in connection to a legal proceeding.